PayPal to halt some remittance services in Japan

The company will stop personal payments due to new regulations

PayPal is halting personal payment services for users in Japan from Wednesday due to new regulations that go into force the following day.

"We wish to inform you that effective 31 March 2010, you will not be able to send funds using the 'Send Money' function for noncommercial transactions only, until further notice," the company wrote in an e-mail to users in Japan. "The changes to our personal payment services are necessary in order for us to comply with new regulatory requirements in Japan."

Commercial payments, for example to companies for goods bought online, are not affected, PayPal said. Personal payments from outside of Japan to users inside the country will also continue.

PayPal is being forced to temporarily discontinue its services while it applies for a government license to offer money transfer services between individuals, said Atsuko Minatoya, a spokeswoman for PayPal Japan.

Such services hadn't been regulated until now but a new money transfer law will enter into force on April 1. The law is intended to help open up the sector but also requires that companies seek registration, she said.

The move to halt personal payment services is a temporary blow to PayPal, which two weeks ago said it plans to double its Asian operations this year and hire an additional 1,000 employees. PayPal manages operations in seven Asian nations, including Japan, from headquarters in Singapore and last year saw the regional volume of payments it handled jump 38 percent to US$6 billion.

But the year hasn't started smoothly. In February, PayPal stopped processing personal payments in India and allowing withdrawals in Indian rupees. The Reserve Bank of India says PayPal needs authorization to operate a cross-border money transfer service under local laws and doesn't have one.

Rupee withdrawals have resumed but personal payments are still suspended.

PayPal did not provide an estimate for when personal remittance services would resume in Japan.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags paypal

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?